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We develop a model in which nonwhite individuals are defined with respect to their social environment (family, friends, and
neighbors) and their attachments to their culture of origin (religion or language), and in which jobs are mainly found through
social networks. We find that depending on how strong peer pressures are, nonwhites choose to adopt “oppositional” identities
because some individuals may identify with the dominant culture and others may reject that culture, even if it implies adverse
labor market outcomes.
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